The last period brought a series of important tax changes that Romanian companies must take into account. For example, we are talking about the entry into force of SAF-T.
SAF-T reporting turns out to be a difficult mission for Romanian entrepreneurs to complete, who in large part feel downright lost due to the legislative innovations that have appeared in fiscal matters in this area.
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To simplify things, EY Romania experts come with valuable advice for companies that are required by law to report SAF-T. Here, therefore, are the most important elements to take into account, as a leader of a local company, but also how you can protect yourself in order not to break the law and stay on good terms with the control authorities , if they step on your threshold:
“Starting with 2022, large taxpayers in Romania must submit the SAF-T file to the tax authorities monthly/quarterly, by the last day of the month for the previous month/quarter. For medium-sized taxpayers, reporting is applicable beginning in 2023, with a grace period expiring at the end of July 2023. Failure to comply with SAF-T reporting requirements may result in fines, the need for additional correction efforts, and additional time for data reconciliations from SAF-T with other tax declarations or financial statements during a tax audit for the respective period. From this perspective, it becomes easy to understand why the very detailed analysis of the internal data collection and reporting processes is necessary, so that this declaration (D406) is correctly and completely drawn up”, EY Romania experts note.
According to them, SAF-T is a standardized electronic file containing detailed accounting data, including sales, purchases, payments as well as tax data relevant for VAT and withholding taxes. As part of the annual reporting, SAF-T presents detailed information on fixed assets, and on request, detailed information on stocks is presented. The main purpose of SAF-T reporting is to simplify the tax audit process and prevent tax fraud.
“It is essential that accounting and tax departments thoroughly understand the SAF-T reporting requirements and work closely with IT support departments to identify the most appropriate solutions to enable compliance with these reporting requirements,” emphasizes Diana Lupu, Partner, Global Compliance and Reporting, EY Romania, Georgiana Constantin, Senior Manager, Indirect Taxes, EY Romania and Roxana Şerban, Manager, Global Compliance and Reporting, EY Romania.
